PA
Pennsylvania House Bill HB1636

Pennsylvania 2023-2024 Regular Session

Pennsylvania House Bill HB1636

Introduced
8/29/23  

Caption

In personal income tax, further providing for imposition of tax and for taxability of estates, trusts and their beneficiaries.

Impact

The introduction of HB 1636 could lead to significant alterations in state tax law, particularly in how income generated from estates and trusts is taxed. This bill aims to clarify ambiguities that have historically made compliance difficult for taxpayers and enforceability challenging for tax authorities. If passed, it would provide a clearer framework for the taxation of trust and estate income, potentially increasing the state's revenue from this sector by ensuring proper tax collection and reducing evasion through improved definitions and regulations.

Summary

House Bill 1636 addresses the personal income tax framework, specifically focusing on the taxation of estates and trusts, as well as their beneficiaries. The bill proposes modifications to the existing regulations regarding the imposition of taxes, aiming to enhance clarity and efficiency in tax collection processes related to these entities. By refining the definitions and parameters surrounding taxability, the legislation intends to streamline tax procedures for individuals and fiduciaries managing estate and trust assets.

Sentiment

The sentiment surrounding HB 1636 appears to be cautious yet predominantly positive among proponents who believe that simplifying tax processes will benefit both the state and taxpayers. However, there are concerns from critics who worry about the potential for increased tax burdens on beneficiaries and the impact on estate planning practices. Overall, the discussion reflects a general willingness to improve tax efficiency but also highlights the need for careful consideration of how changes might affect different stakeholders, particularly families managing inherited wealth.

Contention

Notable points of contention include the implications of the proposed changes for individuals involved in estate planning and the management of trusts. Critics argue that the revisions could lead to unexpected tax liabilities for beneficiaries, complicating the current estate structures for families. Moreover, opposition voices emphasize the importance of maintaining equitable taxation practices that do not disproportionately affect lower and middle-income households, raising questions about the fairness of extending tax implications to all beneficiaries regardless of their circumstances.

Latest HB1636 Activity

Companion Bills

No companion bills found.

Previously Filed As

PA SB815

In personal income tax, further providing for imposition of tax and for taxability of estates, trusts and their beneficiaries; and, in corporate net income tax, further providing for manufacturing innovation and reinvestment deduction.

PA HB1773

In personal income tax, further providing for imposition of tax and for amount of withholding tax.

PA SB396

In personal income tax, further providing for definitions, providing for elective tax imposed at pass-through entity level and further providing for taxability of partners and for income of a Pennsylvania S corporation.

PA HB1584

In personal income tax, further providing for definitions, providing for elective tax imposed at pass-through entity level and further providing for taxability of partners, for income of a Pennsylvania S corporation and for income taxes imposed by other states.

PA HB1703

In personal income tax, further providing for definitions, providing for elective tax imposed at pass-through entity level and further providing for taxability of partners, for income of a Pennsylvania S corporation and for income taxes imposed by other states.

PA HB166

In personal income tax, further providing for imposition of tax.

PA SB659

In personal income tax, further providing for definitions, providing for elective tax imposed at pass-through entity level and further providing for taxability of partners and for income of a Pennsylvania S corporation.

PA SB269

In personal income tax, further providing for imposition of

PA SB206

In personal income tax, further providing for imposition of tax, for when withholding not required, for returns and liability and for return of Pennsylvania S corporation.

PA HB2388

In personal income tax, further providing for imposition of tax; in gross receipts tax, further providing for imposition of tax, providing for transfers to Alternative Fuels Incentive Fund and further providing for establishment of revenue-neutral reconciliation; eliminating the tax imposed upon each dollar of the gross receipts received from the sales of electric energy; providing for the benefit of consumers and for a civil penalty; and making a repeal.

Similar Bills

No similar bills found.